Zomato share price premium in the grey market has gone up from Rs 10 on July 14 (IPO launch date) to Rs 25 on July 22 (IPO allotment date)
Zomato is likely to finalise the share allotment status today, July 22, as per the schedule mentioned in the red herring prospectus
As many as 25 firms have already raised over Rs 27,000 crore via the initial public offering route this year so far
While there may be listing gains but at some point, there will be a massive correction so investors should be extremely cautious, says Bandyopahyay
"Even if we see a correction till 15,000, I'd call it a welcome correction as one can use the dip to buy"
The strategy should be to buy if Nifty corrects to 15900-5850 without hitting the levels of 16100
Zomato's Rs 9,375 crore IPO got oversubscribed by 38 times oversubscription on the last day of bidding process on July 16, 2021
The Rs 2.09 lakh crore that investors have put in could have built about 15,000 km of six-lane highway or bought 127 Rafale fighter jets
Institutional investors, corporate investors and wealthy individuals who are more exuberant about Zomato than retail investors and its employees
If IPOs sail through and the start-ups succeed, they might trigger a new wave of entrepreneurs just as the software firms did in the 1990s